Further to the announcement published on 31 July 2017, Pan African Resources announced that all conditions precedent to the disposal of 100% of the shares and loan accounts in Phoenix Platinum to Sylvania Platinum (transaction) have now been fulfilled.
The effective date of the transaction is 6 November 2017, following the cash settlement of the transaction consideration of R89 million or approximately US$6.3 million.
The transaction provides Pan African Resources with an opportunity to meet the following strategic objectives:
- Focus on core assets and value accretive growth opportunities
- The transaction will enable Pan African Resources African management to focus on the group’s existing gold operations, the construction of the Elikhulu project and other organic and acquisitive growth opportunities, and
- Further improved financial position: The cash proceeds of R89 million, payable on transaction closure, will further strengthen the group’s financial position and supplement the group’s existing cash resources and debt facilities.
The transaction was conditional upon the conclusion of a confirmatory due diligence and other suspensive conditions customary for a transaction of this nature.
“The disposal of Phoenix Platinum, which for some time has been non-core to the company, enables us to further strengthen our financial position and to focus on our large gold operations and the construction of the Elikhulu project,” says Pan African Resources CEO, Cobus Loots.
Feature image credit: Pan African Resources